Please answer the question d . Assume the following data describe the gasoline market: (a) Graph the demand and supply curves. (b) What is the equilibrium price? (c) If supply at every price is reduced by 6 gallons, what will the new equilibrium price be? (d) If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus or shortage will exist when supply is reduced as described in part (c)?

Please answer the question d . Assume the following data describe the gasoline market: (a) Graph the demand and supply curves. (b) What is the equilibrium price? (c) If supply at every price is reduced by 6 gallons, what will the new equilibrium price be? (d) If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus or shortage will exist when supply is reduced as described in part (c)?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 15PAE

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. Assume the following data describe the gasoline market: (a) Graph the demand and supply curves. (b) What is the equilibrium price? (c) If supply at every price is reduced by 6 gallons, what will the new equilibrium price be? (d) If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus or shortage will exist when supply is reduced as described in part (c)?
QUESTIONS: Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. a. Will this affect the supply or the demand for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the effect of changes in demand or supply. d. How will this change the equilibrium price and quantity of coffee? Explain your reasoning. Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. a. How do you imagine this will affect the market for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the changes in demand or supply. d. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.
. Demand, Supply, consumer surplus, Market Equilibrium Price floor. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum. QD = 80,000 – 20,000Px (Demand) QS = - 20,000 + 20,000Px (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Answer the following questions: A. What is the condition for market equilibrium? B Calculate the market equilibrium price and equilibrium output? C. What is the inverse demand curve P = f (QD)? D. Compute the consumer surplus at the equilibrium price. E. What is the inverse supply curve P = f (Qs)? F. Compute the producer surplus at the equilibrium price.
Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Explain. Show graphically the effect of changes in demand or supply. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Question a. What are the equilibrium price and quantity of wheat ? b. Suppose the prevailing price is US$12 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is US$ 4 per bushel? e. If the market price is US$ 8 per bushel , what must happen to restore equilibrium in the market ? Explain. f. Suppose the market price is US $ 16 per bushel. is there a shortage or a surplus in the market ? g. What is the quantity of the shortage or surplus? h. how many bushels will be sold if the market price is US$14 per bushel? i. if the market price is US$ 16 per bushel , what must happen to restore equilibrium in the market ? Explain Here d, e, f, g, h and i need to be solved
Please answer D, E, & F. Demand, Supply, consumer surplus, Market Equilibrium Price floor. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum. QD = 80,000 – 20,000Px (Demand) QS = - 20,000 + 20,000Px (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Answer the following questions: A. What is the condition for market equilibrium? B Calculate the market equilibrium price and equilibrium output? C. What is the inverse demand curve P = f (QD)? D. Compute the consumer surplus at the equilibrium price. E. What is the inverse supply curve P = f (Qs)? F. Compute the producer surplus at the equilibrium price.
In a particular market, demand and supply curves are defined by the following equations QD = 300 – 20P,QS = -540 + 40P, where P is the price per unit in pounds and QD and QS are the quantity demanded and quantity supplied, respectively. A) What is the equilibrium price and quantity? B) If a maximum price is fixed at £12, what quantity will be traded?
help? 5-Which of the following situations certainly leads to a lower equilibrium price? An increase in demand accompanied by an increase in supply. A decrease in demand accompanied by an increase in supply. A decrease in supply accompanied by an increase in demand. An increase in demand, without a change in supply.
A market consists of groups of buyers and sellers of a good or service. Market equilibrium represents the price at which the quantity of goods supplied is balanced with the number of goods consumers are willing and able to buy. Consider the market for coffee: Assume first that there is a heatwave that damages a large portion of coffee beans. Describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity? Last, extend your analysis to the long run, a period of time long enough for new coffee growers to enter the market or for existing growers to exit the market. How might equilibrium price and quantity in the market for coffee be affected when enough time is allowed for a change in the number of sellers in the market?
What would happen in a market if at the same time we had a rise in the supply and a drop in the demand (assume that the laws of demand and supply apply)? Question 9 options: The equilibrium price would definitely increase The equilibrium price would definitely decrease The equilibrium quantity would definitely increase The equilibrium quantity would definitely decrease Please correct and incorrect answer explanation Note:- Please don't simply copy and paste content from other AI tools or bots, or else I may have to downvote your actions. Do not provide the handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Hello, I only need the answer to the last question that is in BOLD. A market consists of groups of buyers and sellers of a good or service. Market equilibrium represents the price at which the quantity of goods supplied is balanced with the number of goods consumers are willing and able to buy. Consider the market for coffee: Assume first that there is a heatwave that damages a large portion of coffee beans. Describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity? Next, assume there is a new study that finds enormous health benefits to coffee consumption. Again, describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity? Now, extend your analysis to what might happen if both of these events (weather which damages coffee beans…
USE FIGURE #1: In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington. Which of the figures above best illustrates the effect of this new law? Group of answer choices - Figure C - Figure B - None of these because a prohibition cannot be illustrated using demand and supply figures - Figure A - Figure D